News Release
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NVR, Inc. Announces Fourth Quarter And Full Year Results
For the year ended
Homebuilding
New orders in the fourth quarter of 2014 increased 3% to 2,713 units when compared to 2,631 units in the fourth quarter of 2013. The cancellation rate in the fourth quarter of 2014 was 18% compared to 14% in the fourth quarter of 2013 and 16% in the third quarter of 2014. Settlements in the fourth quarter of 2014 increased 4% to 3,469 units when compared to the same period in 2013. The Company's backlog of homes sold but not settled as of
Homebuilding revenues for the three months ended
New orders for the 2014 fiscal year increased 5% to 12,389 units, when compared to 11,800 units in fiscal year 2013. Home settlements were flat on a unit basis year over year, with 11,859 units settled in 2014 compared to 11,834 units settled in 2013. Homebuilding revenues for 2014 totaled
Mortgage Banking
Mortgage closed loan production of
Mortgage closed loan production for the 2014 fiscal year increased 12% to
About NVR
Some of the statements in this release made by the Company constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology, such as "believes," "expects," "may," "will," "should" or "anticipates" or the negative thereof or other comparable terminology. All statements other than of historical facts are forward-looking statements. Forward-looking statements contained in this document may include those regarding market trends, NVR's financial position, business strategy, the outcome of pending litigation, investigations or similar contingencies, projected plans and objectives of management for future operations. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of NVR to be materially different from future results, performance or achievements expressed or implied by the forward-looking statements. Such risk factors include, but are not limited to the following: general economic and business conditions (on both a national and regional level); interest rate changes; access to suitable financing by NVR and NVR's customers; increased regulation in the mortgage banking industry; the ability of our mortgage banking subsidiary to sell loans it originates into the secondary market; competition; the availability and cost of land and other raw materials used by NVR in its homebuilding operations; shortages of labor; weather related slow-downs; building moratoriums; governmental regulation; fluctuation and volatility of stock and other financial markets; mortgage financing availability; and other factors over which NVR has little or no control. NVR undertakes no obligation to update such forward-looking statements except as required by law.
NVR, Inc. |
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Consolidated Statements of Income |
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(in thousands, except per share data) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
||||||||
2014 |
2013 |
2014 |
2013 |
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(Unaudited) |
(Unaudited) |
(Unaudited) |
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Homebuilding: |
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Revenues |
$ 1,306,632 |
$ 1,223,808 |
$ 4,375,059 |
$ 4,134,481 |
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Other income |
499 |
808 |
2,853 |
3,962 |
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Cost of sales |
(1,070,601) |
(1,001,415) |
(3,568,586) |
(3,424,204) |
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Selling, general and administrative |
(90,755) |
(73,599) |
(358,851) |
(313,029) |
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Operating income |
145,775 |
149,602 |
450,475 |
401,210 |
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Interest expense |
(5,696) |
(5,626) |
(22,591) |
(21,840) |
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Homebuilding income |
140,079 |
143,976 |
427,884 |
379,370 |
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Mortgage Banking: |
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Mortgage banking fees |
21,406 |
18,344 |
69,509 |
76,786 |
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Interest income |
1,558 |
1,585 |
4,940 |
4,983 |
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Other income |
285 |
187 |
778 |
696 |
|||||
General and administrative |
(11,952) |
(12,135) |
(49,016) |
(42,594) |
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Interest expense |
(152) |
(137) |
(549) |
(545) |
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Mortgage banking income |
11,145 |
7,844 |
25,662 |
39,326 |
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Income before taxes |
151,224 |
151,820 |
453,546 |
418,696 |
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Income tax expense |
(51,773) |
(54,009) |
(171,916) |
(152,219) |
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Net income |
$ 99,451 |
$ 97,811 |
$ 281,630 |
$ 266,477 |
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Basic earnings per share |
$ 24.22 |
$ 21.74 |
$ 65.83 |
$ 56.25 |
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Diluted earnings per share |
$ 23.24 |
$ 21.15 |
$ 63.50 |
$ 54.81 |
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Basic weighted average shares outstanding |
4,106 |
4,500 |
4,278 |
4,737 |
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Diluted weighted average shares outstanding |
4,279 |
4,626 |
4,435 |
4,862 |
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NVR, Inc. |
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Consolidated Balance Sheets |
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(in thousands, except share and per share data) |
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December 31, 2014 |
December 31, 2013 |
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ASSETS |
(Unaudited) |
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Homebuilding: |
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Cash and cash equivalents |
$ 514,780 |
$ 844,274 |
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Receivables |
10,021 |
9,529 |
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Inventory: |
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Lots and housing units, covered under |
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sales agreements with customers |
690,955 |
568,831 |
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Unsold lots and housing units |
131,938 |
117,467 |
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Land under development |
33,689 |
41,328 |
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Building materials and other |
12,904 |
10,939 |
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869,486 |
738,565 |
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Assets related to consolidated variable interest entity |
3,590 |
7,268 |
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Contract land deposits, net |
294,676 |
236,885 |
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Property, plant and equipment, net |
46,242 |
32,599 |
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Reorganization value in excess of amounts |
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allocable to identifiable assets, net |
41,580 |
41,580 |
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Goodwill and finite-lived intangible assets, net |
5,364 |
6,747 |
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Other assets |
302,280 |
307,933 |
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2,088,019 |
2,225,380 |
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Mortgage Banking: |
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Cash and cash equivalents |
30,158 |
21,311 |
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Mortgage loans held for sale, net |
205,664 |
210,641 |
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Property and equipment, net |
6,189 |
4,699 |
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Reorganization value in excess of amounts |
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allocable to identifiable assets, net |
7,347 |
7,347 |
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Other assets |
13,958 |
16,770 |
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263,316 |
260,768 |
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Total assets |
$ 2,351,335 |
$ 2,486,148 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Homebuilding: |
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Accounts payable |
$ 204,622 |
$ 181,687 |
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Accrued expenses and other liabilities |
289,058 |
316,227 |
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Liabilities related to consolidated variable interest entity |
1,618 |
1,646 |
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Non-recourse debt related to consolidated variable |
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interest entity |
64 |
3,365 |
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Customer deposits |
106,755 |
101,022 |
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Senior notes |
599,166 |
599,075 |
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1,201,283 |
1,203,022 |
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Mortgage Banking: |
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Accounts payable and other liabilities |
25,797 |
21,774 |
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25,797 |
21,774 |
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Total liabilities |
1,227,080 |
1,224,796 |
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Commitments and contingencies |
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Shareholders' equity: |
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Common stock, $0.01 par value; 60,000,000 shares |
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authorized; 20,555,330 shares issued as of |
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both December 31, 2014 and December 31, 2013 |
206 |
206 |
||||
Additional paid-in-capital |
1,325,495 |
1,212,050 |
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Deferred compensation trust – 108,614 and |
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109,256 shares of NVR, Inc. common stock as of |
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December 31, 2014 and December 31, 2013, respectively |
(17,333) |
(17,741) |
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Deferred compensation liability |
17,333 |
17,741 |
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Retained earnings |
4,887,187 |
4,605,557 |
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Less treasury stock at cost – 16,506,229 and |
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16,121,605 shares as of December 31, 2014 |
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and December 31, 2013, respectively |
(5,088,633) |
(4,556,461) |
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Total shareholders' equity |
1,124,255 |
1,261,352 |
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Total liabilities and shareholders' equity |
$ 2,351,335 |
$ 2,486,148 |
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NVR, Inc. |
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Operating Activity |
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(dollars in thousands) |
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(Unaudited) |
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Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2014 |
2013 |
2014 |
2013 |
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Homebuilding data: |
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New orders (units) |
||||||||||
Mid Atlantic (1) |
1,435 |
1,445 |
6,365 |
6,056 |
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North East (2) |
286 |
243 |
1,182 |
1,075 |
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Mid East (3) |
594 |
578 |
2,963 |
2,903 |
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South East (4) |
398 |
365 |
1,879 |
1,766 |
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Total |
2,713 |
2,631 |
12,389 |
11,800 |
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Average new order price |
$ 385.9 |
$ 375.7 |
$ 373.7 |
$ 360.4 |
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Settlements (units) |
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Mid Atlantic (1) |
1,808 |
1,698 |
6,129 |
6,029 |
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North East (2) |
309 |
299 |
1,089 |
1,013 |
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Mid East (3) |
833 |
818 |
2,845 |
3,023 |
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South East (4) |
519 |
527 |
1,796 |
1,769 |
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Total |
3,469 |
3,342 |
11,859 |
11,834 |
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Average settlement price |
$ 375.5 |
$ 365.3 |
$ 368.5 |
$ 349.1 |
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Backlog (units) |
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Mid Atlantic (1) |
2,946 |
2,710 |
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North East (2) |
588 |
495 |
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Mid East (3) |
1,150 |
1,032 |
||||||||
South East (4) |
791 |
708 |
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Total |
5,475 |
4,945 |
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Average backlog price |
$ 384.6 |
$ 373.2 |
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Community count (average) |
483 |
462 |
488 |
451 |
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Lots controlled at end of period |
68,700 |
64,600 |
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Mortgage banking data: |
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Loan closings |
$ 881,930 |
$ 721,926 |
$ 2,833,612 |
$ 2,538,072 |
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Capture rate |
87% |
78% |
84% |
81% |
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Common stock information: |
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Shares outstanding at end of period |
4,049,101 |
4,433,725 |
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Number of shares repurchased |
135,921 |
126,605 |
507,648 |
581,387 |
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Aggregate cost of shares repurchased |
$ 158,108 |
$ 118,682 |
$ 567,544 |
$ 554,491 |
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(1) Maryland, Virginia, West Virginia, Delaware and Washington, D.C. |
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(2) New Jersey and eastern Pennsylvania |
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(3) New York, Ohio, western Pennsylvania, Indiana and Illinois |
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(4) North Carolina, South Carolina, Tennessee and Florida |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nvr-inc-announces-fourth-quarter-and-full-year-results-300025017.html
SOURCE
Curt McKay, Office: (703) 956-4058